BancBoston Robertson Stephens Delivers Update on Automobile Industry
29 June 1999
BancBoston Robertson Stephens Delivers Update on Automobile Industry
SAN FRANCISCO, June 28 -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior automobile and financial services
analyst Jordan Hymowitz today provided an update of the automobile industry,
following significant legislation signed by Texas Governor, George W. Bush.
"Mr. Bush recently signed unanimously passed legislation effectively
prohibiting auto manufacturers ownership of franchise dealers in the state,
other than on a temporary basis," said Hymowitz. "Consequently, manufacturers
(specifically, Ford and General Motors), which are in the early stages of
entering the retailing network, are adversely impacted by the legislation."
"We believe the franchise dealer network will remain the exclusive medium
through which to sell new motor vehicles in every state," said Hymowitz.
"While margin compression may or may not occur from the Internet,
manufacturers or other third parties, we believe the possibility of the
new-vehicle transaction process being entirely apart from franchise dealers is
remote.
"In addition, we continue to recommend purchase of three auto dealership
stocks including Sonic Automotive , Lithia Motors , and
Group One Automotive ," said Hymowitz.
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
BancBoston Robertson Stephens is a leading international investment
banking firm focused on growth companies. The firm's 55 equity and high yield
research analysts cover more than 600 companies. Additional information is
available upon request.
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material fact respecting any company, industry or security. Although opinions
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